Why You’re Undercharging for Your Services — and What to Do About It

If you’re a freelancer, creative, or small business owner, you’ve likely wondered if you’re charging too little for your work.

The truth is, most people are.

You work hard and deliver real results. But when you check your bank account, it’s just not enough. Worse, you feel stuck and hesitant to raise your rates for fear of losing clients.

But here’s what many won’t tell you:

Being “affordable” is not the advantage you think it is.

Let’s look at why you’re not charging enough and how to change that.

Signs You’re Underselling Yourself

Here are some common warning signs:

You’re always busy but barely making ends meet.

If you’re handling 10 or more projects a month and still facing financial struggles, your pricing structure is flawed.

You feel resentful or drained after completing work.

That emotional exhaustion signals that you’re doing too much for too little.

Clients never question your price.

While this might seem like a win, it usually means you’re charging far below your worth.

You keep saying yes to low-budget clients.

You hesitate to say no, even if it costs you valuable time and energy.

Why You’re Afraid to Charge More

You’re not alone in this fear. Here’s what’s behind it:

  • You worry about losing clients.

But the right clients don’t just accept your rates; they value them.

  • You compare yourself to cheaper competitors.

However, you overlook their quality, sustainability, and the stress they face. Cheaper does not equal better.

  • You don’t know your true financial needs.

Without a clear understanding of your costs and income goals, you’re only making guesses.

  • You sell time instead of outcomes.

You say “KES 500/hour” when you should be stating “KES 20,000 for X result.”

The Hidden Cost of Undercharging

Undercharging harms not just your wallet but your entire business:

  • Burnout becomes your norm.
  • You attract clients who don’t respect your limits.
  • You can’t invest in better tools, courses, or growth.
  • You can’t afford to take breaks or expand your operations.

The reality is that low prices create weak businesses.

How to Fix It (Without Losing Clients)

Here’s how to raise your rates and regain control step by step.

Step 1: Know Your Numbers

Calculate your:

  • Monthly living costs
  • Business expenses (Wi-Fi, tools, subscriptions, etc.)
  • Target monthly income
  • Capacity (the number of projects you can handle)

Use this simple formula:

(Target Income + Business Costs) ÷ Monthly Projects = Base Price Per Project

Step 2: Shift to Value-Based Pricing

Stop selling hours and start selling outcomes.

Instead of: “KES 1,000/hour for web design,”
Say: “KES 30,000 for a lead-generating website with SEO and mobile optimization.”

Clients care about results, not time spent.

Step 3: Offer Tiered Packages


Create clear options for different budgets without undervaluing yourself:

PackageWhat’s IncludedPrice
StarterBasic service, 1 revisionFrom KES 5,000
GrowthFull service + supportKES 10,000–15,000
PremiumStrategy + faster deliveryKES 20,000+

This gives clients choices without discounts.

Step 4: Practice Saying Your Price Confidently

No stuttering or apologizing. State your price and then pause.

“This project is KES 15,000 and includes a strategy call, the design, and post-launch support.”

Let them absorb it. Don’t negotiate with yourself before they respond.

Step 5: Review Your Rates Every 6–12 Months

As your skills, speed, and demand increase, your prices should too.

If you’re consistently booked, that’s a sign. Increase gradually, starting with new clients or new packages.

Real Talk: It’s Bigger Than Money

Raising your rates isn’t just about boosting income. It’s about:

  • Respecting your time.
  • Attracting better clients.
  • Building a business that supports you instead of draining you.

You’re not doing favors; you’re providing value. And value deserves compensation.

Conclusion

You might not be charging enough, and that’s okay—for now. What matters is that you:

  • Get clear on your numbers.
  • Shift your pricing mindset.
  • Communicate your value.
  • Build pricing that reflects your reality, not your fears.

You don’t need to double your rates overnight, but every step toward charging your worth is a win.